PETALING JAYA: Saliran Group Bhd has released its prospectus yesterday in conjunction with its intended initial public offering (IPO) and listing on the ACE Market.
While the projected listing date has not been announced, the group has revealed it will be going into the public issue of 80.4 million shares, representing 21% of its enlarged issued share capital.
Of the new issues, 19.45 million shares would be allocated to the public through balloting, 7.66 million to eligible persons, while 54 million shares would be privately placed to selected investors, out of which 47.9 million will be to hand-picked bumiputra investors who are approved by the Investment, Trade and Industry Ministry.
Saliran Group said at the time of its proposed listing, its enlarged equity volume would be 382.9 million shares.
The group revealed that it would be using the IPO proceeds primarily to establish a sales office in Indonesia, to purchase more machinery and delivery trucks, for the repayment of bank borrowings as well as working capital, with the balance used to defray listing expenses.
Elaborating on the Indonesian expansion, it said it planned to rent an office unit measuring approximately 1,000 sq ft in South Jakarta, Indonesia.
“This new office will support our business expansion in the country and enable us to capture opportunities arising from market demand in Indonesia as we will be in close proximity to, and accessible by, local customers in Indonesia,” it said in its prospectus, while also anticipating the expansion to be fully funded by the IPO proceeds.
The oil and gas equipment supplier said the contribution of its sales from Indonesia was on an increasing trend from RM1.21mil or 1.71% in the financial year ended 2021 to RM37.6mil, or 15.46% for the financial ended 2023.
Saliran Group pointed out that the Indonesian initiative should take place within 42 months of its listing date, while expecting the purchase of new delivery trucks and machinery as well as the repayment of bank borrowings to be within 24 months from the listing date.
As the offer price of the shares have also not been reported in the prospectus, it is unclear at this juncture how much is the group expecting to raise with the IPO and listing.
Summarily, the group and its subsidiaries are principally involved in the supply and distribution of pipes and fittings as well as steel products primarily for the oil and gas industry, on top of manufacturing fitting and flanges.
